Use the Following Information to Answer the Question(s) Below

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries has no debt, total equity capitalization of $600 million, and an equity beta of 1.2. Included in Galt's assets is $90 million in cash and risk-free securities. Assume the risk-free rate is 4% and the market risk premium is 6%.
-The beta on Galt's assets is closest to:

A) 1.1
B) 1.2
C) 1.3
D) 1.4